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Date: Thursday 28 Aug 2008

LONDON (ShareCast) - Volga Gas says Trans Nafta shareholder Kulyaev, Alexander Alexandrovich has filed suit against its 100% wholly-owned subsidiary Woodhurst Holdings and Trans Nafta in the Basmanny Arbitration Court in Moscow to unwind the sale of Gaznefteservis (GNS).

Trans Nafta sold GNS, holder of the Vostochny-Makarovskoye licence, to Woodhurst in September 2006. Woodhurst has not been properly served at this time.

It is alleged that Trans Nafta had not obtained appropriate corporate approval to sell GNS to Woodhurst, despite representations and warranties to the contrary.

Volga said it is taking steps to defend its position in Russia and the United Kingdom.

• News Channel